How are costs allocated across different fee-blocks?
The total Annual Funding Requirement (AFR) – (the amount of our budget, adjusted by movements in reserves), is split between fee-blocks in proportion to the expected costs incurred in regulating those firms. The cost allocation is a materially accurate reflection of how we intend deploying our resources across the fee-blocks in the year in question. The allocation is forward-looking, so it is likely that the actual use of resources may differ from that assumed in the allocation. Where this happens, we take the difference into account in setting the subsequent year’s fees.
The total Annual Funding Requirement (AFR) – ( the amount of our budget, adjusted by movements in reserves), is split between fee-blocks in proportion to the expected costs incurred in regulating those firms. The cost allocation is a materially accurate reflection of how we intend deploying our resources across the fee-blocks in the year in question. The allocation is forward-looking, so it is likely that the actual use of resources may differ from that assumed in the allocation. Where this happens, we take the difference into account in setting the subsequent year’s fees.
